How to write a detailed plan for entrepreneurship project?

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for venture companies seeking funding, the business plan is the corporate phone card. The success or failure of an investment transaction is often determined by the quality of the business plan.





for start-up risk Enterprises, the role of business plan is particularly important, a brewing project, often very vague, through the formulation of business plans, the pros and cons are written down. See after the scrutiny. Entrepreneurs will be able to have a clearer understanding of the project. It can be said that the first business plan is to create the planned enterprise to sell to the entrepreneur themselves.





second, the business plan also helps to sell risky ventures to venture capitalists, and one of the main purposes of the company's business plan is to raise money. Therefore, the business Plan book must be explained:





(1) The purpose of starting a business--why risk, spend energy, time, resources, money to start a venture enterprise?





(2) How much money is needed to start a business? Why do you need so much money? Why should investors be worth injecting money into this? For the risk enterprises have been built, the business plan can set a more specific direction and focus for the development of enterprises, so that employees understand the business objectives, and motivate them to work for the common goal. More importantly, it can make the enterprise's investors and suppliers, vendors and so on to understand the business situation and business objectives, to persuade contributors (original or new) for the further development of enterprises to provide funds.





It is for this reason that the business plan will be one of the most important commercial documents written by the entrepreneur. So, how to formulate a business plan?





How to write a good business plan book




The end result of an entrepreneurial plan that neither
investors with sufficient information nor excites investors can only be thrown into the dustbin. To ensure that a business plan can "hit the target," entrepreneurs should do the following:





1. Focus on product





In the business plan, all details related to the product or service of the enterprise, including all investigations carried out by the enterprise, should be provided. These questions include: What is the stage of development of the product? What is the uniqueness of it? What is the method of distributing products for enterprises? Who will use the product of the enterprise, why? What is the production cost of the product and how much is the price? What is the plan for the enterprise to develop new and modernized products? Pull the investor into the product or service of the enterprise so that the investor will be as interested in the product as the entrepreneur. In the business plan, entrepreneurs should try to describe everything in simple terms--the definition of goods and their attributes is clear to entrepreneurs, but others don't necessarily know what they mean. The purpose of the plan is not only to convince investors that the company's products will have a revolutionary impact on the world, but also to convince them that the enterprise has the evidence to prove it. The business plan's description of the product should make the investor feel: "Oh, how wonderful and inspiring this product is!"





2. Dare to compete





in the Business Plan book, the entrepreneur should analyze the competitor's situation in detail. Who are the competitors? How do their products work? What are the similarities and differences between competitors ' products and the products of our company? What are the marketing strategies used by competitors? To identify each competitor's sales, gross profit, income and market share, and then discuss the enterprise relative to each competitor's competitive advantage, to show investors, customers prefer the enterprise reason is: The company's product quality, fast delivery, positioning moderate, the price is appropriate, etc. The business plan is to convince its readers that the enterprise is not only a strong competitor in the industry, but also a leader in determining industry standards in the future. In the business plan, the entrepreneur should also clarify the risks that the competitor brings to the enterprise and the countermeasures taken by the enterprise.





3. Understanding the Market





The Business Plan book should provide investors with in-depth analysis and understanding of the target market. It is necessary to analyze the effects of economic, geographic, occupational and psychological factors on the behavior of consumers in choosing to buy the products, as well as the role of various factors. The business plan should also include a major marketing plan that identifies the areas in which the business intends to carry out advertising, promotions and public relations activities, and identifies the budget and benefits of each activity. The business plan should also give a brief account of the company's sales strategy: does the company use outside sales reps or internal staff? Do companies use resellers, distributors or franchisees? What kind of sales training will the company provide? In addition, the business plan should pay special attention to the details of the sale.


4. An indication of the course of action




The action plan of the
enterprise should be no solution. The following questions should be identified in the business plan: How can companies bring their products to market? How to design the production line, how to assemble the product? What raw materials are needed for enterprise production? What production resources do enterprises need to produce resources? What is the cost of production and equipment? Do companies buy equipment or rent equipment? Explain the fixed and variable costs associated with product assembly, storage, and delivery.





5. Show your management team





an idea into a successful venture enterprise, the key factor is to have a strong management team. Members of this team must have a high degree of professional and technical knowledge, management skills and years of work experience, to give investors such a feeling: "See, this team have who!" If the company is a football team, they will always be in the World Cup finals! " The function of a manager is to plan, organize, control and direct the actions of the company to achieve its goals. In the business plan, you should first describe the entire management team and their responsibilities, but then separately introduce each manager's special talents, characteristics and attainments, detailed description of each manager will make contributions to the company. The business plan should also specify the management objectives and organization chart.





6. Excellent Plan summary





The summary of the plan in the business plan is also important. It must give readers an interest and a desire for more information, and it will leave a lasting impression on the reader. The summary of the plan will be the last part of the entrepreneur's story, but it's the first thing investors should look at, and it will extract the most relevant details from the plan: including the basics of the company, its capabilities and limitations, its competitors, its marketing and its financial strategy, A concise and vivid summary of the company's management team. If the company is a book, it is like the cover of the book, well done can attract investors. It would make the impression that the venture capitalist would be a giant in the industry and I can't wait to read the rest of the plan. ”





second, the content of the business Plan book





1. Plan Summary




The
plan is listed at the top of the business Plan book, which is the essence of a condensed business plan. The plan's summary covers the main points of the plan so that the reader can review the plan and make judgments in the shortest possible time.




The
plan summary should include the following: company introduction, main products and business scope, market overview, marketing strategy, sales plan, production management plan, managers and their organizations, financial planning, financial requirements and so on.





in the introduction of enterprises, the first to explain the idea of starting a new enterprise, the formation of new ideas and business goals and development strategy. Secondly, we should explain the current situation of the enterprise, the background of the past and the scope of business. In this part, it is necessary to make an objective comment on the past situation of the enterprise, not to avoid mistakes. A fair analysis tends to win trust, making it easy for people to identify with a business plan. Finally, introduce the entrepreneur's own background, experience, experience and expertise. The quality of the entrepreneur often plays a key role in the performance of the enterprise. Here, entrepreneurs should try to highlight their own strengths and express their strong entrepreneurial spirit, to give investors a good impression.





In the plan summary, the enterprise must also answer the following questions: (1) Enterprises in the industry, the nature and scope of the enterprise management, (2) the content of the main products of the Enterprise, (3) The market of the enterprise is there, who is the customer of the enterprise, what needs they have, (4) The partner and the investor of the Enterprise; (5) Who is the competitor of the enterprise, and how the competitor affects the development of the enterprise.





abstracts should be as concise and vivid as possible. In particular, to explain the differences in their own enterprises and enterprises to achieve success in the market factors. If an entrepreneur understands what he's doing, a summary of just 2 pages is enough. If an entrepreneur does not understand what he is doing, the summary may have to write more than 20 pages. As a result, some investors "pick the wheat from the chaff" according to the length of the digest





2. Product (Service) Introduction





in the evaluation of investment projects, one of the most concern of investors is whether the products, technologies or services of risk enterprises can and to what extent solve real life problems, or whether the products (services) of risky enterprises can help customers save money and increase income. Therefore, the introduction of the product is an essential part of the business planning book. Generally, the product introduction should include the following: Product concept, performance and characteristics, the main product introduction, the market competitiveness of products, product research and development process, the development of new product planning and cost analysis, product Market Forecast, product brand and patent.





In the product (service) Introduction section, the entrepreneur wants the product (service) to make the detailed explanation, the explanation should be accurate, also must be easy to understand, makes the investor who is not the professional can also understand. Generally, product introductions should be accompanied by product prototypes, photographs or other introductions. Generally speaking, the product introduction must answer the following questions: (1) What is the problem that the customer wants the product of the enterprise to solve, what benefit can the customer obtain from the product of the enterprise? (2) What are the advantages and disadvantages of the products of the enterprise compared with the competitor's products, why the customer chooses the product of the enterprise? (3) What kind of protection does the enterprise take for its own products, what patents, licenses, or agreements have been reached with the manufacturers who have applied for a patent? (4) Why the enterprise's product pricing can enable enterprises to generate enough profit, why users will buy large quantities of enterprise products? (5) The way to improve the quality of products, performance, enterprises on the development of new products have plans and so on. Product (Service) Introduction of the content is more specific, so it is relatively easy to write. While it is necessary to praise your product as a marketing necessity, it should be noted that every commitment made by a business is a "debt" that must be diligently honoured. Keep in mind that entrepreneurs and investors are building a long-term partnership. An empty promise can only be complacent. If the enterprise cannot fulfill the promise, cannot repay the debt, the enterprise's prestige must be subjected to the extremely damage, therefore is the real entrepreneur's disdain.





3. Personnel and organizational Structure





has a product, the second step of the entrepreneur to do is to form an effective management team. The quality of enterprise management directly determines the size of business risk. But the high quality management personnel and the good organization structure are the important assurance which manages the good enterprise. Therefore, the venture capitalists will pay special attention to the management team evaluation.





Enterprise management personnel should be complementary, but also to have a team spirit. An enterprise must have the specialized personnel responsible for product design and development, marketing, production operation Management, enterprise finance and so on. In the Business Plan book, it is important to make clear to key managers about their competencies, their responsibilities in the enterprise, their past experience and background. In addition, in this part of the business Plan book, also should be a brief introduction of corporate structure, includes: Organization Chart of the company, functions and responsibilities of each department, heads and principal members of various departments, remuneration system of the company, List of shareholders, including equity, proportion and privilege, board members of the company and background information of the directors.

4. Market Forecast





When an enterprise wants to develop a new product or expand to a new market, it first needs to make a market forecast. If the predictions are not rosy, or the credibility of the forecasts is questionable, then investors will have to take greater risks, which is unacceptable to most venture capitalists. Market forecasts should first predict demand: Is there a demand for the product? Can the degree of demand bring the desired benefits to the enterprise? How big is the new market? What are the future trends and status of demand development? What factors affect demand. Second, market forecasts also include the situation of competition-the competitive landscape faced by enterprises: what are the main competitors in the market? Is there a market gap in favor of the enterprise product? What is the estimated market share of the enterprise? How will this enterprise react to the market, and how does that affect the business? Wait a minute.





in the Business Plan book, the market forecast should include the following: A survey of the status quo, competitive firms, Target customers and target markets, market position of the enterprise's products, market area and characteristics, and so on. The forecast of the market by the venture enterprise should be based on the rigorous and scientific market investigation. The markets that venture firms face are inherently more volatile and unpredictable. Therefore, venture enterprises should maximize the scope of information collection, pay attention to environmental prediction and adopt scientific forecasting means and methods. The entrepreneur should keep in mind that the market forecast is not a figment of the imagination, and the knowledge of the wrong markets is one of the main reasons for business failure.





5. Marketing Strategy





Marketing is the most challenging part of the enterprise management, the main factors that affect the marketing strategy are: (1) The characteristics of the consumers, (2) The characteristics of the products, (3) The conditions of the enterprises themselves and (4) The factors of the market environment. Finally, the marketing strategy is the marketing cost and marketing benefit factors. In the business plan, the marketing strategy should include the following: (1) Marketing organization and Marketing channel Choice, (2) marketing team and Management, (3) promotion plan and advertising Strategy, (4) Price decision. For start-ups, because of the low visibility of products and enterprises, it is difficult to enter other enterprises have been stable sales channels. As a result, enterprises have to temporarily take cost-effective marketing strategies, such as door-to-door sales, large dozen commodity advertising, to the wholesalers and retailers, or to any willing to sell business. For the development of enterprises, it can use the original sales channels, on the other hand can also develop new sales channels to adapt to the development of enterprises.





6. Manufacturing Planning




The manufacturing plan in the
business plan should include the following: product manufacturing and technical equipment status, new product launch plan, technology upgrading and equipment update requirements, quality control and quality improvement plan.




In the process of seeking funds, the entrepreneur should make the manufacturing plan more detailed and reliable in order to increase the valuation value of the enterprise before the investment
. Generally, the manufacturing plan should answer the following questions: What is the situation of the plant and equipment required for the production and manufacture of the enterprise, how to ensure the stability and reliability of the new product when it is entered into the scale production; who is the supplier in the introduction and installation of the equipment; the supplier's lead time and the demand of the resources , production cycle standards and production work plan preparation, material requirements planning and its assurance measures, quality control methods, and other related issues.





7. Financial Planning





Financial planning takes a lot of effort to make a specific analysis, including cash flow statements, balance sheets, and the preparation of the income statement. Liquidity is the lifeblood of the enterprise, therefore, enterprises in the start-up or expansion of liquidity needs to have a detailed planning and the process of strict control; the income statement reflects the profitability of the enterprise, which is the result of the operation of the enterprise in a period of time, the balance sheet is reflected in the enterprise situation Investors can measure the business situation and the possible return on investment by the ratio of the data in the balance sheet.





financial planning generally include the following: (1) assumptions about the conditions of the Business Plan, (2) The projected balance sheet, the projected profit and loss statement, the cash income and expenditure analysis, the source and use of the funds.





To put it this way, a business plan outlines what entrepreneurs need to do in the fundraising process, while financial planning supports and explains the business plan. Therefore, a good financial planning is critical to assess the amount of capital required by venture firms and to increase the likelihood that venture firms will obtain capital. If the preparation of financial planning is not good, will give investors the experience of enterprise management personnel, reduce the evaluation value of risk enterprises, but also increase the business risk, then how to formulate a good financial planning? This depends first and foremost on the long-term vision of the venture firm-Creating a new product for a market or entering a market with more financial information.





a start-up that focuses on a new technology or innovative product is unlikely to refer to the data, prices, and marketing practices of existing markets. As a result, it forecasts the growth rate and potential net profit of the market and sells its ideas, management teams and financial models to investors. A venture enterprise that is ready to enter an existing market can easily explain the size of the market as a whole and how to improve it. The Venture Enterprise can plan the sales scale of the first year of the enterprise on the basis of obtaining the information of the target market.





Financial planning should be consistent with the assumptions of the business plan. In fact, financial planning and enterprise production planning, human resources planning, marketing plans are inseparable. To complete the financial planning, the following questions must be clarified: (1) How much is the product emitted during each period? (2) When to start product line expansion? (3) How much is the production cost of each product? (4) How much is the price of each item? (5) What distribution channels are used, and what are the expected costs and profits? (6) What types of people need to be hired? (7) When does the hire start and what is the salary budget? Wait a minute.





Third, check





after writing the business plan, it is best for the entrepreneur to check the plan again to see if the proposal can accurately answer investors ' questions and gain investors ' confidence in the business. In general, you can check the proposal in the following ways:





1. Does your business plan show that you have experience managing the company? If you lack the ability to manage your company, make it clear that you've hired a business master to manage your company.





2. Does your business plan show you are able to repay the loan? Ensure that a full ratio analysis is provided to prospective investors.





3. Do you have a complete market analysis of your business plan book? Let investors believe that the product demand that you set out in the proposal is true.





4. Whether your business plan book is easily understood by investors. The business Plan book should have indexes and catalogues so that investors can easily access the chapters. In addition, it should be ensured that the information flow in the directory is logical and realistic.





5. Do you have a summary of the plan in your business plan and put it on the front page, the plan summary is equivalent to the cover of the company's business plan book, investors will first look at it. In order to keep investors interested, the plan summary should be written in a fascinating.





6 Your Business plan book is grammatically correct. If you can't guarantee it, then it's best to ask someone to check it for you. The spelling mistakes and typographical errors of the proposal can quickly deprive an entrepreneur of opportunity.





7. Whether your business plan book will reassure investors about the product/service. If necessary, you can prepare a product model. All aspects of the business plan will have an impact on the success of funding. Therefore, if you have no confidence in the success of your business plan, it is best to consult the proposal preparation guide or consult a dedicated consultant.